Question: Please solve and explain how you got the answer. 14.7. A company in Calgary serves a market in the northwestern United States. Now it ships

Please solve and explain how you got the answer.

14.7. A company in Calgary serves a market in the northwestern United States. Now it ships LTL at an average cost of $30 per unit. If the company establishes a distribution center in the market, it estimates the TL cost will be $15 per unit, inventory carrying costs will be $5 per unit, and the local LTL cost will average $7 per unit. If the company forecasts annual demand at 200,000 units, how much will they save annually? ANSWER. Annual saving =$600,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Physical Distribution 3 6 9 1 4 . 7 . A company in Calgary serves a market in the northwestern United States. Now it ships LTL at an average cost of $ 3 0 per unit. If the company establishes a...

A company in Calgary serves a market in the northwestern United States. Now it ships LTL at an average cost of $ 3 0 per unit. If the company established a distribution center in the markey, it...

13.7 A company in Calgary serves a market in the northwestern United States. Now it ships LTL at an average cost of $27 per unit. If the company establishes a distribution center in the market, it...

A company in Calgary serves a market in the northwestern United States. Now it ships LTL at an average cost of $28 per unit. If the company establishes a distribution center in the market, it...

. A company in Calgary serves a market in the north - western United States. Now it ships LTL at an average cost of $ 2 8 per unit. If the company establishes a distribution centre in the market, it...

A company in Calgary serves a market in the northwestern United States. Now it ships LTL at an average cost of $30 per unit. If the company establishes a distribution center in the market, it...

GUARANTEED LIKE THIS SHOULD BE BETTER Question 3 (10 Points) Dahlgren believes that if Swedish Match moves forward with the transaction it would likely receive a credit rating of BBB by S&P. Do you...

CASE 20 Enron: Not Accounting for the Future* INTRODUCTION Once upon a time, there was a gleaming office tower in Houston, Texas. In front of that gleaming tower was a giant "E" slowly revolving,...

GUARANTEED LIKE Question 5 (15 Points) Assuming that Dahlgren is correct in that Swedish Match will receive a credit rating of BBB if it moves forward with the transaction. Answer the following: What...

Focus company - noncurrent liability disclosures . In Exercise 1.1,you were asked to obtain the most recent annual report of a company that you were interested in reviewing throughout this term....

The ordinary interest using exact time (banker's rule) will always be higher than exact interest using exact time. Explain why this is true.

Draw the graph of the function f (x) = 2xfrom R to R.

Why might the growth of an industry reduce a firms costs of production? A It may cause a decrease in subsidiary industries B It may create greater competition for resources C It may lead to the...

SIMAD UNIVERSITY Class: BACC25 Subject: Islamic Accounting Instructions: a) Follow The Instructions. Midterm Exam Instructor: All Ibrahim Date: 6-4-2022 b) You Have 1.5 Hrs. To Complete This Test. c)...

Write formal and informal proposals.

Describe the components of a formal report.

Write formal and informal reports.